Sage does have the upper hand against Xero when it comes to quotes and invoices, as well as multi-currency support. Xero is accounting software for small business owners who need an affordable, easy-to-use online accounting solution that includes invoicing, data capture and storage, and bill payment. Xero integrates with Gusto, a full-service payroll provider, for businesses that want to add on a payroll service.
Is Xero Right for You or Your Business?
There are a number of alternative accounting software programs that can offer powerful features and a user-friendly interface. All and all, it’s an excellent option for sole proprietors and growing companies requiring an inexpensive way to manage finances and basic inventory. Keep in mind that support is only available via email or one-way call. If you’re a larger company with multiple bank accounts, go for a more robust accounting system like QuickBooks Enterprise. For heavily inventory-based businesses, we suggest an ERP like NetSuite ERP or Sage Intacct. In general, we were pleased with Xero’s customer support options.
Set up your organisation details
Get access to all of Xero including add-ons like Xero Projects and Xero Expenses. Use the demo company to try things out, or enter your own business details and data to try it out for real. Anything you enter will be retained when you transfer from a free trial to a subscription. Xero is a powerful online accounting software solution for small businesses. Run things smoothly, keep tidy online bookkeeping records, and make compliance a breeze. Both accounting software products let users invite their accountants by email.
Telephone support is limited
Keep track of your unpaid and overdue invoices, bank account balances, profit and loss, cash flow and bills to pay – plus reconcile bank accounts and convert quotes to invoices. We also ensure that the software offers most what is a void cheque standard accounting features and reports, awarding higher rankings to those that provide advanced services, like tax filing. FreshBooks is another one of our favorites for small businesses — especially freelancers.
You can use Xero’s demo company to create a sample bill, which contains a payment status bar, the description and cost of the purchased item, and an Add Payment button. With Xero, you can either create invoices from scratch or copy and edit invoices to save time. If a client accepts an estimate, you can create an invoice directly from the quote. Sales tax is automatically calculated and included in each invoice. Xero often offers promotional pricing, so be sure to check for any applicable discount codes before purchasing a plan. View the money coming in and out of your small business from the accounting app dashboard.
Helpful App
- Popular alternatives, such as FreshBooks and QuickBooks Online, cost at least $18 monthly without introductory discounts.
- If you can’t justify paying for QuickBooks Online or Xero or they have too many features your business doesn’t need, Wave might be an ideal alternative.
- It has unlimited customizable invoices, a client portal, built-in project and time tracking and a highly rated mobile app.
- Don’t forget about the multi-currency support, which lets you accept payments from international clients.
- You can add unpaid bills and purchase orders to Xero via desktop or mobile app, making it simple for small businesses to keep track of what they owe.
Xero doesn’t provide a phone number on its customer support page, but a representative will call you if necessary. This is a serious drawback if you want to be able to pick up the phone and talk through an issue or are new to accounting software and have lots of questions. Xero provides multiple layers the main specific features of double entry bookkeeping system of protection for the personal and financial information you entrust to Xero accounting software. Security is a priority for Xero, as we know it is for you, so it’s also important you also take steps to safeguard your data. Coefficient stands out as the most versatile and powerful Xero reporting tool.
It’s designed specifically for small businesses and offers invoicing, time tracking and expense management. If you’re in the market for accounting software, you might be feeling overwhelmed by all the options out there. While Xero and QuickBooks are wildly popular, they’re not the only options available.
To see how they stack up with other software, check out our list of the best cloud accounting programs. Accountants and bookkeepers can partner with Xero and use Xero online accounting software for more efficient workflows, client work, practice management, and collaboration. One of the advantages of using Xero is that it can save businesses time and money. With Xero, businesses can eliminate the need for paper records and reduce accounting fees.
Additionally, we studied user reviews for independent opinions on the software’s pros and cons. When looking for the best accounting software for growing businesses specifically, we focused on pricing tiers, the number of integrations, and the breadth of features and tools. Xero accounting software is a cloud-based system that helps small businesses manage their finances. This means it can be accessed from any internet-connected device. The software offers a variety of features, including invoicing, tracking expenses and creating financial reports.
If you’re located in the United States, though, there’s a better chance your accountant is familiar with QuickBooks Online than Xero. QuickBooks Online is an industry standard with more than 5 million users worldwide. If you count QuickBooks Desktop users, that number rises to 8 million. With more than 3 million users worldwide, Xero is popular but not as ubiquitous as QuickBooks Online. If snapping photos of receipts to claim expenses on the go is a key mobile feature you’d like to have, regardless of plan level, QuickBooks Online might be a better fit. Can support larger small businesses with dozens of employees; all three plans include an unlimited number of users.
Unlike many other competitors that cap the number of users per plan (looking at you, QuickBooks), Xero offers unlimited users even on the lowest tier plan. This is beneficial to small businesses that need multiple people to be able to log into the accounting software and don’t want to pay extra or upgrade to get more seats. The Established plan costs $78 per month and includes unlimited numbers of invoices and bills. It provides a comprehensive view of a company’s cash flow by presenting upcoming bills and outstanding invoices in a clear, tabular format. Whether you have its basic or most advanced plan, the Xero app supports unlimited users for real-time collaboration between your employees, accountants, and financial advisors.
We compare Xero vs. Sage so you can decide on the perfect accounting solution for your needs. Another option is Wave, which is a free accounting software program that includes invoicing, payroll, double-entry and sales tax tracking. Whatever your needs, there’s sure to be an accounting software program that’s a perfect fit. is your business income subject to self Once you sign up, Xero provides several guided tutorials to acquaint you with its tools, such as connecting your business bank account, adding customers and creating invoices. Many pages within the app have how-to videos and links to a step-by-step guide, which is great for business owners who aren’t very tech-savvy.
Sage’s accounts payable features are good, as they show you your current cash in, cash out and balance totals. The bank reconciliation feature should automate your transactions, but it would be nice to schedule payments all in the same place. Xero is an online accounting software designed for small businesses. If you’re new to Xero, then this guide to getting started should help you quickly get up and running.
However, compared to competitors we reviewed, Xero excels at presenting information in an easy-to-understand way. For example, Xero’s cash flow bar chart displays cash going out of the company as a gray line and cash coming in as a blue line. A business owner trying to maintain positive cash flow would look for the blue line to remain above the gray line (see the screenshot below for an example). This plan is designed for sole proprietors or early-stage enterprises and includes 20 invoices and five bills or purchase orders per month. Users can upgrade at any time to the Growing or Established plans for unlimited bills, purchase orders, and invoices.
Zoho, for example, is accounting software with a free invoice platform that allows you to bill in multiple currencies. Check out the Xero App Store to find, try and buy business apps that connect to Xero online accounting software and make running your small business even easier. Apps like Stripe, GoCardless, Vend, and Shopify connect seamlessly and sync data with Xero. Third-party Xero reporting tools take your financial analysis to the next level. They offer deeper insights, more customization, and advanced features that can transform your decision-making process.